SUMMER TRAINING REPORT

ON
“IDENTIFICATION AND POTENTAIL
OF ALTERNATE CHANNEL
PARTNERS FOR CEMENT SALES”

CONDUCTED AT ULTRA TECH

CEMENT PATIALA

SUBMITTED TO: SUBMITTED BY:

Mr. ASHUTOSH MODI MOHIT KWATRA
M.B.A 3rd (Sem)

GYAN JYOTI INSTITUTE OF

MANAGEMENT AND TECHNOLOGY

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 ACKNOWLEDGEMENT

Perseverance, Inspiration and Motivation have always played a key role in the
success of any venture, so hereby it’s my pleasure to record thanks & gratitude to
the persons involved.

First I thank Mr. Lalit Mohan Dwivedi, Ultra Tech cement for his continuous
support, stimulating suggestions and helping me all the time during my project.

A special thanks goes to Mr.Surinder Bhatia Ultra Tech cement. He was already
ready to listen & give advice.

I am also greatly indebted to my mentor Mr. Ashutosh Modi who was there to
listen me & help me out if I ever had any problem . He has always been courteous
even consented over telephone. At last, thanks to my family members for being
supportive

Mohit Kwatra

2
 PREFACE

Indian economy is facing a boom in the real estate. This is directly related with the
cement sector. Ultra Tech cement being one of the top three players in the Indian
market and the most exported Indian Cement is an important part of the sector.

During my project, I carried out a research for Ultra Tech cement and tried to find
out most of the dealers trading in construction industries(other than cement) and few
from other than construction industries, to find out potential in them to switch over
to cement sales with an ultimate aim to increase sales of Ultra Tech cement.

The report also gives a detailed idea about the Indian cement industry and the key
players.

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 DECLARATION

I do hereby declare that this project entitled “Identification and potential of

alternate channel partners for cement sales” in Patiala is my own and original
work. This is for fulfilling the requirement of project report. It has never been
submitted nor been published else where.

Date:
Place: Patiala

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 INDEX

1 CEMENT AND ITS TYPES 6

2 INIAN CEMENT INDUSTRY

 OVERVIEW 11
 CEMENT DEMAND BREAK UP 12
 EXPORT OF CEMENT 13
 MAJOR PLAYERS 15

3 INTRODUCTION ADITYA BIRLA GROUP

 ABG PROFILE 20
 VISION MISSION AND VALUES 22
 MAJOR COMPANIES OF THE GROUP 23
 MAIN BRANDS OF THE GROUP 26

4 INTRODUCTION ULTRA TECH CEMENT

 PRODUCTION UNITS 30
 ADVANTAGE 31
 APPLICATIONS 33
 EXPORTS 34

5 PROJECT WORK
 AIM OF THE PROJECT 36
 OBJECTIVES OF THE STUDY 37
 RESEARCH DESIGN 38
 DATA ANALYSIS 41

6 CONCLUSION 44

7 LIMITATION 45

8 SUGGESTIONS 46

9 ANNEXURE (QUESTIONNAIRE) 47

10 BIBLIOGRAPHY 50

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WHAT IS CEMENT?

Cement is a binder which sets and hardens independently, and can bind other
materials together. The word "cement" traces to the Romans, who used the term
"opus caementicium" to describe masonry which resembled concrete and was made
from crushed rock with burnt lime as binder. Cement is an essential component of
infrastructure development and most important input of construction industry,
particularly in the government’s infrastructure and housing programs, which are
necessary for the country’s socio-economic growth and development. Cement is a
mixture of limestone, Clay, Silica and Gypsum. It is a fine powder which when
mixed with water sets to a hard mass as a result of hydration of the constituent
compounds. It is the most commonly used construction material. Cement is
manufactured by burning a mixture of limestone and Clay at high temperatures in a
kiln, and then finely grinding the resulting clinker along with Gypsum.

Cement ranks second in volume among the industrial products manufactured in the
world. And it is the most widely used man-made product and second only to water
as world’s most heavily consumed substance. Cement is poly-phased inorganic
compound of complex nature formed by burning of calcareous and argillaceous raw
materials as a binding material. Cement is used as a binding material in various
types of civil constructions. Earlier, clay or lime was used for binding materials
together.

PROPERTIES OF CEMENT ARE:

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  Low cost, high performance
 Binder with almost any hard material

 Building block
 Gain strength progressively with ageing
 Substitutes with steel, polyester, epoxy-resin, plasticizers

With advancement in manufacturing technology, today cement is a completely

technical product. Various types of grades of cement are being manufactured to
satisfy different needs of the construction industry. However, cement is still
considered as a non-technical product and used in a traditional and often unscientific
manner. Compressive strength is the important known parameter for approving the
quality of cement. Strength of cement is also affected by water-cement ratio, grading
of aggregates, methods of preparation, methods of compaction, curing conditions
and atmospheric conditions.

DIFFERENT TYPES OF CEMENT

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There are different varieties of cement based on different compositions according to
specific end uses, namely Ordinary Portland Cement, Portland Pozolona Cement,
Portland Blast Furnace Slag Cement, White Cement and Specialized Cement. The
basic difference lies in the percentage of clinker used.

1. Ordinary Portland Cement (OPC):

OPC, popularly known as grey cement, has 95% clinker and 5% of Gypsum and
other materials. It accounts for 70% of the total consumption. White cement is a
variation of OPC and is used for decorative purposes like rendering of walls,
flooring etc. It contains a very low proportion of iron oxide. Ordinary Portland
cement is the most commonly used cement for a wide range of applications. These
applications cover dry-lean mixes, general-purpose ready-mixes, and even high
strength pre-cast and pre-stressed concrete.

2. Portland Pozolona Cement (PPC):

Portland pozzolana cement is Ordinary Portland Cement blended with pozzolanic
materials (power-station fly ash, burnt clays, ash from burnt plant material or
Siliceous earths), either together or separately. Portland clinker is ground with
Gypsum and Pozzolanic materials which, though they do not have cementing
properties in themselves, combine chemically with Portland cement in the presence
of water to form extra strong cementing material which resists wet cracking, thermal
cracking and has a high degree of cohesion and workability in concrete. PPC has
80% clinker, 15% pozolona and 5% gypsum and accounts for 18% of the total
cement consumption. It is cheaply manufactured because it uses fly ash/burnt
clay/coal waste as the main ingredient. It has a lower heat of hydration, which helps
in preventing cracks where large volumes are being cast.

3.Portland Blast Furnace Slag Cement (PBFSC):

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PBFSC consists of 45% clinker, 50% blast furnace slag and 5% Gypsum and
accounts for 10% of the total cement consumed. It has a heat of hydration even
lower than PPC and is generally used in construction of dams and similar massive
constructions. Portland blast-furnace slag cement contains up to 70 per cent of finely
ground, granulated blastfurnace slag, a nonmetallic product consisting essentially of
Silicates and Aluminum-silicates of Calcium. Slag brings with it the advantage of
the energy invested in the slag making. Grinding slag for cement replacement takes
only 25 per cent of the energy needed to manufacture Portland cement. Using slag
cement to replace a portion of Portland cement in a concrete mixture is a useful
method to make concrete better and more consistent. Portland blast-furnace slag
cement has a lighter colour, better concrete workability, easier finish ability, higher
compressive and flexural strength, lower permeability, improved resistance to
aggressive chemicals and more consistent plastic and hardened consistency.

4. White Cement:
White Portland cement has essentially the same properties as gray cement, except
for color, which is a very important quality control issue in the industry. It is
manufactured using fuel oil (instead of coal) and with iron oxide content below
0.4% to ensure whiteness. Special cooling technique is used. It is used to enhance
aesthetic value, in tiles and for flooring. White cement is much more expensive than
grey cement.

5. Specialized Cement:

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  Oil Well Cement: is made from clinker with special additives to prevent any

porosity.
 Rapid Hardening Portland Cement: It is similar to OPC, except that it is

ground much finer, so that on casting, the compressible strength increases

rapidly.
 Water Proof Cement: OPC, with small portion of calcium stearate or non-

saponifibale oil to impart waterproofing properties.

CEMENT INDUSTRY

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AN OVERVIEW :
Cement production commenced in India as early as 1914. The first cement unit was
set up at Porbandar in 1914 with a capacity of 1,000 tones per annum.Cement is the
preferred building material in India. It is used extensively in household and
industrial construction. Earlier, government sector used to consume over 50% of the
total cement sold in India, but in the last decade, its share has come down to 35%.
Rural areas consume less than 23% of the total cement. Availability of cheaper
building materials for non-permanent structures affects rural demand.

The cement industry in India has around 300 mini cement plants and 130 large
cement plants. The total production capacity if these plants is around 167.36 million
tons.

Cement industry accounts for the second largest share(the largest being cigarettes)
of the total excise collection by the government. India is the second largest
producer and consumer of cement in the world, after china with a total
capacity of 224 million tones (MT) per annum as on April 30,2010.

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Around 95 per cent of the total cement production is consumed domestically and the
balance is exported. The important end-users for cement include the housing
segment (accounts for around 52 per cent of the total demand), infrastructure
projects and industrial projects excluding road(around 14%) repairs and
maintenance segment (around 18%) and government demand (around 15%) and
demand from roads (around 1%)

CEMENT DEMAND BREAK UP

1%
15%

HOUSING SEGMENT
INFRASTRUCTURE
18% 52% REPAIRS
GOVERNMENT DEMAND
DEMAND FROM ROADS

14%

Cement is a key infrastructure industry. It has been decontrolled from price and
distribution w.e.f. 1st march, 1989 and delicensed on 25th july,1991. However, the
performance of the industry and prices of cement are monitored regularly. Cement
sector has been a beneficiary of government’s infrastructure focus on infrastructure
and housing. Cement has been witnessing a strong growth in the last two year due to
combination of national highway development project(NHDP) and the housing
boom driven by a low interest regime. Over the next 5-6 years the NHDP and the
new project (road component alone) are expected to account for 4-5 million tones of
cement demand every year. This could result in double digit growth in cement sector
over the next five years.

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EXPORT OF CEMENT FROM INDIA

The Indian cement industry exported around 6 million tonnes of cement during
FY2009,accounting for around 4% of the total production. There has been a
significant year to year variation in the export trend, implying that Companies rely
on cement exports to balance out the domestic demand supply situation. The
difference in supply and demand is met by exporting. The export of Indian cement
has increased over the years, giving a boost to the Indian cement industry. The
demand for cement in the foreign countries is a derived demand, for it depends on
industrial activity, real estate, and construction activity. Since growth is taking place
all over the world in these sectors, Indian export of cement is also increasing.

The Indian cement industry is technologically very advanced, as a result of which

the quality of Indian cement is now considered the second best in the world. This
has given a major boost to the Indian export of cement. The production of cement in
India is not only able to meet the domestic demand, but large amounts are also

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exported. A fair amount of clinker and cement by-products are also exported by
India. As the quality of Indian cement is very good, its demand in the international
market is always high.

The major companies exporting Indian cement are:

 Gujarat Ambuja
 Ultra Tech Cement
 L&T Limited

Export of Indian cement has registered a fair amount of growth, giving a boost to
the Indian economy. India has an immense potential to tap cement markets of
countries in the Middle East and South East Asia due to its strengths of locational
advantage, large-scale limestone and coal deposits, Adequate cement capacity and
world-class cement production with the latest technology.

DOMESTIC PLAYERS

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 1. Associated Cement Companies Ltd (ACCL)
Associated Cement Companies Ltd manufactures ordinary Portland cement,
composite cement and special cement and has begun offering its marketing expertise
and distribution facilities to other producers in cement and related areas. It has
twelve manufacturing plants located throughout the country with exports to SAARC
nations. The company plans capital expenditure through expansion of existing units
and/or through acquisitions.

2. Century Textiles and Industries Ltd (CTIL)

The product portfolio of CTIL includes textiles, rayon, cement, pulp & paper,
shipping, property & land development, builders and floriculture. Cement is the
largest division of CTIL and contributes to over 40 per cent of the company's
revenues. The company has an installed capacity of 4.7million tones with a total
cement production of 5.43 million tones in 2009. CTIL has four plants that
manufacture cement, one in Chattisgarh, two in Madhya Pradesh and one in
Maharashtra.

3. Grasim-UltraTech Cemco
Grasim's product profile includes viscose staple fiber (VSF), grey cement, white
cement, sponge iron, chemicals and textiles. With the acquisition of UltraTech,
L&T's cement division in early 2004, Grasim has now become the world's seventh
largest cement producer with a combined capacity of 31 million tones. Grasim (with
UltraTech) held a market share of around 21 per cent in 2005-06. It has plants in
Madhya Pradesh, Chattisgarh, Punjab, Rajasthan, Tamil Nadu and Gujarat among
others. The company plans to invest over US$ 9 million in the next two years to
augment capacity of its cement and fiber business.

4. Gujarat Ambuja Cements Ltd (GACL)

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Gujarat Ambuja Cements Ltd was set up in 1986 with the commencement of
commercial production at its 2 million tonne plant in Chandrapur, Maharashtra. The
group has clinker manufacturing facilities at Himachal Pradesh, Gujarat,
Maharashtra, Chattisgarh, Punjab and Rajasthan. The company has a market share
of around 10 per cent, with a strong foothold in the northern and western markets.
Its total sales aggregated US$ 526 million with a capacity of 12.6 million tonne in
2009. Gujarat Ambuja is one of India's largest cement exporter and one of the most
cost efficient firms. GACL has a 14.45 per cent stake in ACC, making it the second
largest cement group in the country, after Grasim-UltraTech Cemco.

5. India Cements
India Cements is the largest cement producer in southern India with a total capacity
of 8.81 million tonne and plants in Andhra Pradesh and Tamil Nadu. The company
has a market share of 5.4 per cent with a total cement production of 6.36 million
tonne in 2009. Its product portfolio includes ordinary portland cement and blended
cement. The company has limited its business activity to cement, though it has a
marginal exposure to the shipping business. The company plans to reduce its
manpower significantly and exit non-core businesses to turnaround its fortune.

6. Jaiprakash Associates Limited

Jaiprakash Industries, now known as Jaiprakash Associates Limited (JAL) is part of
the Jaypee Group with businesses in civil engineering, hospitality, cement,
hydropower, design consultancy and IT. It has an annual capacity of 4.6 million
tonne with plants located in Rewa & Bela (Madhya Pradesh) and Sadva Khurd
(Uttar Pradesh). The company has a market share of 3.8 per cent with the cement
division contributing US$ 172 million to revenue in 2009. The company is
upgrading its capacity to 6.5 million tonne through the modernizing of the existing
units and the commissioning of a new grinding unit at Tanda (Uttar Pradesh) with an
investment of US$ 163 million. The company manufactures a wide range of world

16
class cement of OPC grades 33, 43, 53, IRST-40 and special Blends of pozzolana
cement.

7. JK Synthetics
JK Synthetics, a Singhania Group company, started manufacturing nylon at Kota in
1962. Subsequently, it diversified into PSY/PFY, nylon tyre-cord, cement (in 1975),
acrylic and white cement (in 1984). The company has a market share of 2.7 per cent.
JK Synthetics Limited is restructuring its business divisions into two separate
entities- JK Cements and JK Synthetics. After the restructuring, it will be left with a
cement plant at Nimbahera in Rajasthan, with a capacity of 3.26 million metric
tonne and manufacturing white cement.

8. Madras Cements
Madras Cements Ltd is one of the oldest cement companies in the southern region
and is a part of the Armco group. The company is engaged in cement, clinker,
dolomite, dry mortar mix, limestone; ready mix cements (RMC) and units generated
from windmills. The company has three plants in Tamil Nadu, one in Andhra
Pradesh and a mini cement plant in Karnataka. It has a total capacity of 5.47 million
tonne annually and holds a market share of 3.1per cent. Madras Cements plans to
expand by putting up RMC plants. As Karnataka is a promising market, the
company is further expanding its capacity from the present 1.5 million tonne to 3.4
million tonne through an investment of US$ 9 million.

9. ULTRA TECH

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UltraTech Cement Limited has an annual capacity of 23.1 million tonnes. It
manufactures and markets Ordinary Portland Cement, Portland Blast Furnace Slag
Cement and Portland Pozzalana Cement. It also manufactures ready mix concrete
(RMC). UltraTech Cement Limited has five integrated plants, six grinding units and
three terminals — two in India and one in Sri Lanka. UltraTech Cement is the
country’s largest exporter of cement clinker. The export markets span countries
around the Indian Ocean, Africa, Europe and the Middle East.

UltraTech’s subsidiaries are Dakshin Cement Limited and UltraTech Ceylinco (P)
Limited.

Following are some of the major names in the Indian

Installed
cement industry: Production
Capacity
Company
ACC 17,902 18,640
Gujarat Ambuja 15,094 14,860
UltraTech 13,707 17,000
Grasim 14,649 14,115
India Cements 8,434 8,810
JK Group 6,174 6,680
Jaypee Group 6,316 6,531
Century 6,636 6,300
Madras Cements 4,550 5,470
Birla Corp. 5,150 5,113

FOREIGN PLAYERS :

1. Holcim

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Holcim, earlier known as Holder bank, has a cement production capacity of 141.9
million tonne. It is a key player in aggregates, concrete and construction related
services. It has a strong market presence in over 70 countries and is a market leader
in South America and in a number of European and overseas markets. Holcim
entered India by means of a longterm strategic alliance with Gujarat Ambuja
Cements Ltd (GACL). The alliance aims to strengthen their clinker and cement
trading activities in South Asia, the Middle East and the region adjoining the Indian
Ocean. Holcim also intends to use India as an additional base for its IT operations,
R&D projects as well as a procurement sourcing hub to generate additional
synergies and value for the group.

2. Italcementi Group :

The Italecementi group is one of the largest producers and distributors of cement
with 60 cement plants, 547 concrete batching units and 155 quarries spread across
19 countries in Europe, Asia, Africa and North America. Italcementi is present in
the Indian markets through a 50:50 joint venture company with Zuari Cements. All
initiatives in southern India are routed through the joint venture company, while
Italcementi is free to buy deals In its individual capacity in northern India. The joint
venture company has acapacity of 3.4 million tonne and a market share of 2.1 per
cent.

3. Lafarge India :

Lafarge India Pvt Ltd, a subsidiary of the Lafarge Group, has a total cement capacity
of 5 million tonne and a clinker capacity of 3 million tonne in the country. Lafarge
commenced operations in 1999 and currently has a market share of 3.4 per cent. It
exports clinker and cement to Bangladesh and Nepal. It produces Portland slag
cement, ordinary portland cement and Portland pozzolana cement. The Indian
cement plants are located in Chhattisgarh and Rajasthan. Lafarge Cement has

19
become the largest cement selling firm in the Indian markets of West Bengal, Bihar,
Jharkhand and Chhattisgarh.

This project on “Identification and Potential of alternate channel partners for

cement sales” is carried in Ultra Tech Cement, Patiala. As already mentioned that
Ultra Tech Cement is one of the biggest cement producer and player in our country.
And this Ultra tech cement is owned by Aditya Birla Group of Industries. Profile of
Aditya Birla Group of Industries (owner of Ultra tech cement) shall first be
discussed and then on Ultra tech cement prior to relative study and analysis on the
subject.

ADITYA BIRLA GROUP

About the group :
Aditya birla group is the 11th largest producer of cement in the world and 7th
largest in Asia.
Mr. Kumar Mangalam Birla is the Chairman of the group. A US$ 29 billion
corporation, the Aditya Birla Group is in the League of Fortune 500. It is anchored
by an extraordinary force of 130,000 employees, belonging to 30 different
nationalities. In the year 2009, the Group was ranked among the top six great places
for leaders in the Asia-Pacific region, in a study conducted by Hewitt Associates,
RBL Group and Fortune magazine. In India, the Group has been adjudged the best
employer in India and among the top 20 in Asia by the Hewitt-Economic Times and
Wall Street Journal Study 2007.

Over 60 per cent of the Group's revenues flow from its overseas operations. The
Group operates in 25 countries India, UK, Germany, Hungary, Brazil, Italy, France,

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Luxembourg, Switzerland, Australia, USA, Canada, Egypt, China, Thailand, Laos,
Indonesia, etc.

Globally, the Aditya Birla Group is:-

 A metals powerhouse, among the world's most cost-efficient aluminium and

copper producers. Hindalco-Novelis is the largest aluminium rolling

company. It is one of the three biggest producers of primary aluminium in
Asia, with the largest single location copper smelter
 No.1 in viscose staple fibre

 The fourth-largest producer of insulators

 The fourth-largest producer of carbon black

 The fifth-largest producer of acrylic fibre

 The tenth-largest cement producer

 Among the best energy-efficient fertiliser plants

In India:
 Largest cement producer
 Largest premium, branded apparel company

 The second-largest producer of viscose filament yarn

 The second-largest in the chlor-alkali sector

 Among the top five cellular operators

 Among top 10 Indian BPO companies by revenue size

 Among the top five asset management and private sector life insurance

companies
 Among the top three supermarket chains in the retail business

Beyond Business :

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Transcending business for over 50 years now, the Group has been and continues to
be involved in meaningful welfare-driven initiatives that distinctly impact the
quality of life of the weaker sections of society in India, South-East Asia and Egypt.

In India, the Group's social projects span 2,500 villages. It reaches out to six million
people annually through the Aditya Birla Centre for Community Initiatives and
Rural Development, spearheaded by Mrs. Rajashree Birla. Its focus is healthcare,
education, sustainable livelihood, infrastructure and espousing social causes.

The Group runs 42 schools, which provide quality education to over 45,000 children
in India's interiors. Of these, 18,000 children receive free education. An additional
8,000 students receive merit scholarships. Likewise at its 18 hospitals in India, more
than 500,000 patients are given extremely subsidised medical care.

VISION MISSION AND VALUES OF GROUP

Vision
To be a premium global conglomerate with a clear focus on each business.

Mission
To deliver superior value to customers, shareholders, employees and society at
large.

Values

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  Passion
 Seamlessness
 Commitment
 Integrity
 Speed

The major companies of the Group are among India's leading

corporates. These include:
Company
Grasim
Ultra Tech Cement ltd
Samruddhi Cement
Hindalco
Novelis Inc.
Aditya Birla Minerals ltd.
Aditya Birla Mhemicals ltd
Hindalco-Almex Aerospace ltd
Products/services
Cement, viscose staple fibre, rayon
grade mix grade pulp,, ready mix
concrete, chemicals, textiles.
Cement, ready mix concrete
Cement
Aluminium, copper
Aluminium rolled products, cans
primary metal, recycling
Australia-copper mines
Caustic soda
Aerospace alloy

Utkal Alumina International ltd Alumina

Dahej Harbour& Infrastructure ltd Handling of captive cargo(cargo
unit) and commercial cargo
Aditya Birla Science and R&D
Technology Company ltd.

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Tubed Coals Mines ltd
Mahan Coal ltd
Aditya Birla Nuvo
Birla Sun Life Insurance Company
ltd
Birla Sun Life Asset Management co Asset management
ltd
Aditya Birla Finance ltd
Aditya birla Money Mart ltd
Aditya Birla Money ltd
Birla insurance Advisory &Broking
Services ltd
Aditya Birla Capital Advisors private Private equity investment, advisory
ltd.
Idea Cellular ltd
Aditya Birla Minacs World wide ltd
Madura Garments life Style retail
company ltd
Peter England Fashions and Retail
ltd
Essel Mining &Industries ltd
Aditya Birla Retail ltd
Mining
Mining
Branded garments, viscose filament
yarn, carbon black, agri business,
insulators, textiles
Life insurance
Non-banking financial services
Distribution and wealth management
Broking
General insurance advisory and
broking
and management services.
Cellular services
IT-ITES
Branded apparel retail
Apparel retail
Iron ore mining, noble ferro alloys,
and wind power generation
FMCG products, fruits, vegetables,
groceries, frozen food, bakery.
Homecare and pharmacy.
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MAIN BRANDS OF THE GROUP

RETAILS:
 More

TELECOM:
 Idea

TEXTILES:
 Linen Club
 Pyroguard
 Ray One

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 Nuvo Lana
 Jaya Shree
 Kolorone

CEMENT
 Birla Super
 Ultra Tech Cement(formerly Birla Plus)

ALUMINIUM
 Everlast Aluminium Roofing Sheets
 Freshwrapp Aluminium Foil
 Freshpakk Semi-rigid Containers

COPPER
 Birla Copper
 Birla Gold
 Birla Silver
GARMENTS
 Louis philipppe
 Van heusen
 Allen solly
 Peter England
 The collective

CHEMICALS
 Polyphos
 Epotech
 Birlasulf-ss

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  Birlasulf-sm
 Birlasluf-35

ULTRA TECH CEMENT: THE ENGINEER’S CHOICE :

Ultra Tech Cement Limited was incorporated as a public limited company on 24th
August 2000, as “L&T Cement Limited” a 100% Subsidiary of Larsen & Toubro
Limited. The name of the Company was changed to Ultra Tech Cement Co. Limited
with effect from 19th November 2003 after the Aditya Birla group owned Grasim
Industries acquired it. The name of the company was again changed to UltraTech
Cement Limited with effect from 11th October 2004.
Ultra Tech Cement Limited is leading cement company and the country’s largest
exporter of cement clinker based in, India. It has an annual capacity of 23.1 million

27
tonnes. It manufactures and markets Ordinary Portland Cement, Portland Blast
Furnace Slag Cement and Portland Pozzalana Cement. It also manufactures ready
mix concrete (RMC). The export markets span countries around the Indian Ocean,
Africa, Europe and the Middle East. It is part of Grasim Group.
UltraTech Cement Limited has five integrated plants, six grinding units and three
terminals two in India and one in Sri Lanka.
UltraTech’s subsidiaries are Dakshin Cement Limited, UltraTech Cement Lanka
(Pvt.) Ltd. and UltraTech Cement Middle East Investments Limited. With UltraTech
Cement, the Aditya Birla Group has established itself as not only the most respected
domestic player but also among the global leaders in cement

The stages of evolution of Ultra Tech cement are listed below:-

2001
 Grasim acquired 10 per cent stake in L&T. Subsequently increased stake to

15.3 per cent by October 2002

 Durgapur grinding unit
2002
 The Grasim Board approves an open offer for purchase of up to 20 percent of
the equity shares of Larsen & Toubro Ltd (L&T), in accordance with the
provisions and guidelines issued by the Securities & Exchange Board of India
(SEBI) Regulations, 1997.
 Grasim increases its stake in L&T to 14.15 per cent
 Arakkonam grinding unit

28
 2003
 The board of Larsen & Toubro Ltd (L&T) decides to demerge its cement
business into a separate cement company (CemCo). Grasim decides to acquire
an 8.5 per cent equity stake from L&T and then make an open offer for 30 per
cent of the equity of CemCo, to acquire management control of the company.

2004
 Completion of the implementation process to demerge the cement business of

L&T and completion of open offer by Grasim, with the latter acquiring
controlling stake in the newly formed company UltraTech.

2006
 Narmada Cement Company Limited amalgamated with Ultra Tech pursuant

to a Scheme of Amalgamation being approved by the Board for Industrial &

Financial Reconstruction (BIFR) in terms of the provision of Sick Industrial
Company Act(Special Provisions).
ULTRA TECH PRODUCTION UNITS:
Ultra Tech’s subsidiaries are Dakshin Cement Limited and UltraTech Ceylinco (P)
Ltd. UltraTech has five integrated plants, five grinding units and three terminals —
two in India and one in Sri Lanka. These include an integrated plant and two
grinding units of the erstwhile Narmada Cement Company Limited, a subsidiary,
which has been amalgamated with the company in May 2006.The details of its
different production units is shown as under :-
Details of Units:
PLANT/UNIT KILN CAPACITY(tpd) CAPACITIES(million pa)
A. Composite Integrated Plants
1.AndraPradesh Cement Works 8000 2.3

2. Awarpur Cement Works 9500 3.3

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3. Gujrat Cement Works 15000 5.3

4.Hirmi Cement Works 8050 1.6

5..Narmada Cement Works 4350 0.4

B. Grinding Units

6. Arakkonam Cement Works 1.2

7. Jharsuguda Cement Works 0.8

8. Narmada Cement (Ratanagiri) 0.4

Works
9. Narmada Cement(Magdala) 0.7
Works
10. West-Bengal Cement Works 1.0
TOTAL 17

THE ULTRA TECH ADVANTAGE

Ultra Tech Cement Ltd is one of the largest premium quality cement producer in
India. UltraTech Cement is manufactured in the state of the art dry process plant at
Tadipatri (Andhra Pradesh) and grinding unit at Arakkonam (Tamil Nadu).
Advanced instrumentation systems, computerized process control and online quality
control through X-ray ensure consistently high quality product at Ultra Tech Cement
plant.

The quality of Ultra Tech Cement has been globally accepted and is India's largest
exporter of clinker and cement.

Ultra Tech Cement due to its consistently superior quality has become the first
choice amongst discerning users and construction professionals.

30
Raw Material :
Careful selection and scientific proportioning of raw material with the use of latest
technology enables manufacturing of high quality cement. Rigorous hourly tests are
conducted on raw material. Laboratories at all plants are equipped with sophisticated
facilities.

World Class process Technology ensures Quality and Consistency :

Quality Assurance is an integral part of Ultra Tech’s manufacturing philosophy. The
quality attributes are consistently ensured through rigorous application of advanced
technology. Key features include

 Use of good quality limestone and careful selection of other raw

 Material
 Computerized mining operation and homogenization of crushed
 limestone
 Perfect proportioning of raw materials by QCX
( Quality Control through X-ray )
 Online process control through CCR
( Computerized Control Room )
 High-quality clinkerisation and close-circuit grinding for optimum particle

size distribution

UltraTech Cement plants have been accredited with ISO 9001, 14001, 18001
Certifications by DNV of Netherlands

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Distinct Features:
 Higher Compressive strength
 Optimal fineness
 Balanced physical and chemical properties
 Optimal setting time
 Consistency in quality
 Low-level of Chloride

Advantages:
 Higher workability
 Lower consumption
 Enhanced durability
 Quicker construction
 Overall economy

Customer Care and Guidance:

UltraTech Cement offers customers a range of "product plus" services. A full-
fledged Technical Services Network has been set up exclusively for technical advice
and guidance in usage of cement UltraTech Cement is marketed nationwide through
large network of stockist's, sales officers and representatives. Cement dumps have
also been established at strategic locations to facilitate faster delivery of cement

Value Added Services :

 Mobile concrete lab services ( Concrete cube testing facilities )
 Training Programmes for masons, site supervisors on good
 construction practices
 Field visits by qualified civil engineers
 Educating individual house builders on various aspects of building

32
  material and construction
 Non-destructive testing of concrete
 Any other customer specific services

Applications :
 All Kinds of constructions including precast and prestressed concrete,

masonry works
 Slip form constructions
 Rehabilitation and retrofitting works
 Cement based products such as pipes, tiles, blocks, poles, etc.

 Roads, runways, bridges and flyovers

 Water retaining structures

ULTRA TECH CEMENT :

AN OVERVIEW OF EXPORT :
Ultra Tech Cement recently bagged an award for being the highest exporter of the
year from CAPEXIL for the eighth time in a row for its sterling performance. A
leading cement exporter, its plants have also received various awards for
environment protection, social awareness, safety and management of better
industrial relations.

The company has been credited with boosting its exports of cement and clinker last
year by 25 per cent to 4 million tonnes from 2.8 million tonnes in 2008-2009.
stringent quality control and testing in the best laboratories ensure that cement and
clinker produced from its plants conform to and surpass international standards. The
laboratory is equipped to test cement as per ASTM, British and Euro standards. All

33
the plants are ISO 9001 certified for the latest production process and 14001
certified for environmental management. The cement plant in Gujarat has an
additional OHSAS 18001 certification as well for occupation hazards and safety
parameters. The company has a captive jetty at the Gujarat plant. The jetty length of
337 meters and width of 23 meters is capable of handling ships of 45,000 DWT with
11 meters draft. Loading of cement and clinker onto the ship is carried out by a ship
loader, which is fed by a four km long conveyor belt that connects the plant to the
jetty. Ultra Tech Cement is the first and only Indian cement company to obtain
an EC certification for this plant. The accreditation, given by Bureau Veritas, is a
pre-requisite to supply cement to EC member countries. Ultra Tech is one of the few
Asian cement companies to receive this recognition. The export markets span
countries around the Indian Ocean, Africa, Europe and the Middle East.

The Hirmi Cement Works in Chattisgarh and the Jharsuguda Cement Works in
Orissa make them ideal locations for export of cement and clinker to Nepal and
Bangladesh. With captive railway sidings to facilitate loading of railway rakes and a
high-tech production facility for cement and clinker, UltraTech Cement has found
wide acceptance in these neighboring countries

34
DISCUSSION ON RESEARCH OF PROJECT PROFILE:

The project emphasis on Identification of alternate channel partners for cement sales
and then find out their potential for the reasons to switch over to cement sales.

AIM :

The project aims at "Identification of alternate channel partners of cement

sales” and find out potential in them to switch over to cement sales” It revolves
around the alternate partners generally engaged in construction industries who are
the optimal decision maker of their firm's to think /analyse to switch over to cement
sales industries in future. Since the cement is a core product and used by all

35
consumers; it is very necessary for them to know about their brand's position and
customer expectations.
Earlier Marketers aimed at satisfying the customer's need but the present day of
Marketing requires something more that is customers delight.

In this era of globalization Company can survive only when it knows the fast of
consumer, which is changing day by day. A company can get an edge other its
competitors in these cutthroat competitions through superior quality, innovations
and better customer responsiveness. Hence this project aims to analyze how a other
then cement marketer can be convinced to switch over to cement sales by putting
before them the values of cement sales as compared to their present sales industries.

OBJECTIVE OF THE STUDY:

Primary objectives:

To identify the alternate channel partners for cement sales and find out potential in
them to switch over to cement sales with an ultimate aim to increase the sale of
cement (ultra tech)

Secondary objectives:

1. To find out major player in the market having potential to switch over to other
than their present business.(cement).

36
2. To find out the major competitors of cement sales.
3. To find out the problems faced by alternate partners to switch over to cement
(ultra tech).
4. To help/ suggest the alternate partners to switch over to cement(ultra tech) sales.
5. To suggest the company(ultra tech) to make their policies dealer friendly to
enable the alternate partners to switch over to cement sales(ultra tech).

RESEARCH :

a) General Methodology:
The methodology adopted for this project was completely based on primary
information. The locale of the study was Distt. Patiala (Punjab).The first stage
included gathering information about the general alternate partners of cement
market engaged generally in construction industries and others of this city. That
was, to find out which are major players, what is general distribution pattern, what
volume of comparative capital they have invested , turn over, percentage of profit
they are earning. etc.

37
The second stage comprised determining the objective of the study and drafting the
questionnaire. The questionnaire were designed keeping in mind the objective of the
study. It was designed with due guidance of the Sr. zonal manager of the company.
It was assured that the questionnaire didn’t exceed more than 15 questions. Keeping
in mind the education level of the respondents who were mainly dealers/retailers,
the questionnaire were kept simple and precise.

b) Data Sources:
The research called for gathering primary data only. Hence, primary sources were
considered for the collection of data.

Primary source:
The primary data is gathered for specific purpose and is collected by the researcher
himself. It includes direct communication and feedback from the dealers/sub
dealers/retailers.

c) Research Approach:
The research conducted was exploratory in nature and the goal was to gather
preliminary data to shed light on the real nature of the subject and to suggest
possible solutions. For the purpose of this project, I went for a questionnaire- based
survey of dealers/sub-dealers/retailers. A pilot test of this questionnaire was done for
the preparation of final questionnaire. It involved, applying the draft questionnaire
to a sample of 5 dealers.

d)Research Instrument:
1. Personally administered questionnaire
2. Structured interview

38
3. Personal contacts

The sample size taken for the purpose of study was around 100 respondents(out of
which 40-Sanitation, 15-Paint and Plywood, 8-petrol pump, 15-electricity, 10-
furniture, 12- glassware) from Patiala. All the respondents were chosen randomly.

Sampling Procedure:
I tried to find out most of the dealers trading in construction industries(other than
cement) and few from other than construction industries.

Contact Method:
I personally visited most of the dealers after seeking prior appointment. Few
shopkeepers due to their busy schedule or loyalty for their brand refused to respond
at all.

DISCUSSION ON MARKET SURVEY

On market survey it is noted that cement is widely used for construction purposes.
To find out its alternate channel partners, emphasis was given on the dealers/sub-
dealers/retailers engaged in sales of constructions/building materials. Although few
dealers from other than building materials were also consented. Hence, out of more
than 100 dealers/sub-dealers, 40 on Sanitation, 15 Paints & Plywood, 15 electricity,
12 glassware and 10 furniture and 8 petrol pumps were consented.

Market survey was carried out on the questionnaire enclosed as Annexure ‘A’. On
personal visit, most of the dealers discussed the relativity of their present business

39
based on capital investment, turn-over, space required, handling of material,
pollution and the profit margin.

Most of the dealers shown their un-decisiveness on looking for other than their
present business as they occupied the business from legacy having established
channel of customers. Study also revealed that the new generation having good
status of education had the enthusiasm to look forward for the change. But shown
their constraints on issues like capital constraints, additional space required, labour
problem, pollution problem etc.

ANALYSIS ON DATA COLLECTED :

Out of 100 dealers/sub-dealers/retailers visited, 94 has shown their unwillingness to

switch over to cement sales and 4 have shown the willingness to switch over to
cement sales. Remaining 2 had no answers.

40
 100%

80%

60%

40%

20%

0%
unwillingness to wllingness to
no answers
switch over to switch over to
94% 4% 2%

Reasons given by the dealers/sub-dealers/retailers shown unwillingness to

switch over to cement sales are elaborated as :-

 Capital constraints 15
 More space/large godowns required for cement storage 20

 Labour problem 15
 Cement causes pollution and is harmful to skin.15

41
  Less profit margin 9
 Cement gets spoiled when contacted with water. 10

 Too much competition in market 10

UNWILLINGNESS OF DEALERS/RETAILERS TO SWITCH OVER TO

CEMENT SALES
CAPITAL CONSTRAINTS

M ORE SPACE REQUIRED FOR

10 15 CEMENT STORAGE
LABOUR PROBLEM
10
CEMENT CAUSES POLLUTION
A ND IS HARMFUL TO SKIN
9 20
LESS PROFIT MARGIN

TOO MUCH COMPETITION IN

15 M ARKET
15
CEMENT GETS SPOILED W HEN
CONTACTED W ITH W ATER

Reasons given by the dealers/sub-dealers/retailers willing to switch over to

cement sales :-

 High turn over 1

 No advertisement required for Ultra Tech Cement – “The Engineers’ choice –

Name is sufficient” 2
 Support of Aditya Birla Group at large 1

42
 WILLINGNESS OF DEALERS/ RETAILERS TO
SWITCH OVER TO C EMENT SALES

1 1
HIGH TURNOVE R

NAME IS SUFFICIENT

SUP PORT OF A DITYA

BIRLA GROUP

CONCLUSION:

 The study of this subject has enlighten me at large to know widely about the

cement industry in the world and in our country. Aditya Birla Group as a
whole is not only a group of industries and a largest player in the cement
market in the name of Ultra Tech Cement but also playing a vital role in
building up a better society in India by initiating meaningful welfare giving
activities to improve the quality life of weaker sections, its rural development
programme span over 2500 villages run by Mrs. Rajashree Birla is a
incredible job in health care; education and infrastructure etc. It’s running of

43
 schools, hospitals, free education to the children, scholarships to the poor
students is a stone mark in building the better society in India.

 Study revealed that there is certainly potential in the market to adopt ultra

tech cement sales, but there is lesser scope in switching over from existing
business(refrence anaylsis of data). Major competitors of cement sales are
from steel, sanitation and other building material.

 It has been elaborated by dealers/retailers that for switching over to cement

sales, they had to face, resentment from their elders in family at large. Capital
constraints, requirement of big godowns are some other reasons. And last but
least is the problem of labour and pollution as the cement handling spreads lot
of dust.

 Study also revealed that a good number of users are still not aware with the
change in name of Ultra Tech cement. An effort on this account will
positively convince cement dealers to switch over to cement sales.

LIMITATIONS:-

 The major problem which I faced in my survey was that most of the dealers

being loyal to their family business( adopted from legacy) did not talk about
the problems they are facing.

 Data collected on turnover/profit etc to know potential in them may not be

reliable as many of them were not willing to disclose it and others have not
shown the documents.

44
  Many of the dealers /retailers denied to answer any question at all. So the

actual figures can be somewhat different from what that I have found out.

 Subject being technical/analytical, some of the dealers/ retailers were not able

to understand. It took me a lot of time to get them understand. Few of them

could not give so much time from their busy schedule to attend customers.

SUGGESTIONS:-

 I would submit my suggestion to Aditya Birla Group to make their policies

more dealer friendly

 Tie up with the bankers to support dealers in getting capital loan limits.
 Encouraging awards for achieving prescribed targets.
 Daily/weekly based supply chain to avoid holding big godowns.

 I have noted that a good number of buyers / users are still unaware of the fact

that Ultra Tech cement is the changed name of Birla cement. Birla cement
had a very good image on the mind of users and it is still very popular. But

45
 people are not much aware about Ultra Tech cement. I would suggest Ultra
Tech to take some more steps to make people familiar with the changed
name. This will surely bring a boost in the sale of Ultra Tech cement and will
convince dealer/retailers to switch over to cement sales.

 Ultra Tech cement has very good market image of a modern cement with very
good quality. Company should try to encash their image. Although study
revealed that dealers are least interested to switch over from their present
business, but there is definite potential among younger sections/ freshers to
adopt cement(Ultra Tech) sales. So there is a need for proper attention on this
sector.

 Dealers/retailers were suggested on the merits of the cement sales that it has
larger turn over as compared to their present business. They need not to look
on the customer; as Ultra Tech in itself is a name to attract the customer.
They were also convinced that by adopting cement sale (Ultra Tech) they will
be a part of Aditya Birla Group engaged in building a better society in India

ANNEXURE
QUESTIONNAIRE

Dear Sir/Madam,

I am conducting a survey on behalf of ultra tech cement as a part of my

‘summer training project.’ I would be extremely benefited if you answer the
following questions. I assure you that the information provided by you will be used
for my project work only.

46
NAME: _ _ _ _ _ _ _ _

ADDRESS & CONTACT NO. : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

_____________

YOU ARE A:

>DEALER
>RETAILER
>SUB DEALER

Q1. WHAT IS THE NAME OF YOUR FIRM?

ANS.

Q2. WHAT BUSINESS ARE YOU DOING?

ANS.

Q3.DO YOU HAVE SOME OTHER OUTLET IN PATIALA?

ANS.(a) YES
(b) NO

Q4.WHAT IS THE TURNOVER AND INVESTMENT OF YOUR FIRM?

ANS.

Q5. HAVE YOU EVER THOUGHT OF CHANGING THE BUSINESS. IF YES

IN WHAT AREA. IS THAT CEMENT?
ANS.

47
Q6. IF YOU LIKE TO SWITCH OVER TO CEMENT WHICH PRODUCT OF
CEMENT WOULD YOU LIKE?
ANS.(a) ACC (b) ULTRA TECH (c) AMUJA
(d)JAYPEE (e) INDIA (f) OTHERS

Q7. HOW DO YOU COMPARE THE BUSINESS OF CEMENT WITH THAT OF

YOU ARE PRESENTLY DOING IN RESPECT OF
(1) INVESTMENT (2) TURNOVER
ANS.

Q8. WHAT ARE THE HINDRANCES YOU VISUALISE IN CEMENT SALES

AS COMPARED TO THE PRODUCT YOU ARE PRESENTLY SELLING?
ANS.

Q9. WHAT MARGINS/PROFITS DO YOU GET IN YOUR PRESENT

BUSINESS?
ANS.
Q10. WHAT MARGINS/PROFITS DO YOU EXPECT IN CEMENT IN
PERCENTAGE?
ANS.

Q11. WHOSE ADVERTISEMENT YOU LIKE THE MOST?

ANS. (a)ACC (b) AMBUJA (c) ULTRA TECH
(d) JAYPEE (e) INDIA (f) OTHERS

Q12. WHAT IS THE BEST REASON YOU THINK IS MORE PREFERRABLE

IN YOUR BUSINESS THEN IN CEMENT MARKET?
ANS.

48
Q13. DO YOU THINK THAT THERE IS MORE COMPETITION IN CEMENT
MARKET?
ANS.

Q14. HAVE YOU EVER BEEN AWARE ABOUT THE NAME OF ULTRA
TECH CEMENT. IF YES PLEASE TELL THE SOURCE?
ANS.

BIBLIOGRAPHY

 www.cement.com

 www.AdityaBirlaGroup .com

 www.UltraTechcement.com

 www.researchandmarkets.com

 www.cementmanufactureasssociation.com

 www.ibef.org

 www.wikipedia.com
 Research methodology –By Naresh Malhotra

 Marketing management-By Philip Kotler

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